startup secrets - hiring a+ talent

Proprietary and Confidential

START UP SECRETS

An insider’s guide to unfair competitive advantage

Company Formation: Hiring A+ Talent

@underscorevc startupsecrets.com


Have a Question? Tweet it!

2startupsecrets.com @underscorevc

@underscorevc@mjskok#startupsecrets


The most important capital = human capital

You are what you hire

3

Why is this important?

startupsecrets.com @underscorevc


A’s hire A’s

B’s hire C’s

C’s = Cost you your company

4

Hire above your grade, never below

startupsecrets.com @underscorevc


Making the wrong hire


When you make the wrong hire and lose people, you lose…

What they know Who they know

$25.05B/year in costs associated with knowledge loss from just 1% of employees

As a startup, your organization risks disorganizationThe MIT Sloan Review


HiringIT’S ALL IN THE DETAILS…


Assess 3 key things…


EKS IQ

CQ

Attitude

Aptitude

Ability

Can they be successful at the job?

Will they really love the job?

Will they fit and reinforce?




Do they have the EKS:• Experience• Knowledge• Skills

And where applicable, the IQ• Intelligence• Smarts




Can you find people’s passion?• If people love what they do, they tend to do it well• If they do it well, they tend to be successful

Can you• Find a fit for what they love to do?• Set them up for success?


My first interview question?


What are you passionate about?

sometimes my ONLY question!




Uncovertheir

Passion

Love it

Do Well

Success

Reward

People who are really passionate about their work tend to love what they do, take pride in it, and the results and rewards all follow.

This creates a self reinforcingpositive virtuous cycle of success


It doesn’t have to all be about work…

“I never did a day’s work in my life. It was all fun.”

Thomas A. Edison


Another revealing question?


What would you choose to do if

today was your last day of work?

sometimes my ONLY question!


Hiring is more than a science…


Beyond, EKS, IQ…

Think about what will set someone up for success in your situation / team / organization• Street smarts vs. Book smarts?• Judgment vs. Intellect?• Effort vs. Ability?

Think about how to find a FIT…


EQ: Emotional Quotient


Inter-personal skills, connections & relationships are vital in a startup

3 Examples:• “Speed teaming”

Form and re-form rapidly – e.g. around problem solving Cross functional and interdisciplinary teams often best

• Customer intimacy Often vital in product development, support etc.

• Leverage: building relationships with key stakeholders Shareholders – for strong investor support Suppliers – for faster time to market Partners – for leveraging other’s capabilities


Startup Secret: Hire for EQ, CQ


EKS: Experience, Knowledge, Skills IQ: Intelligence Quotient EQ: Emotional Quotient

• Fit with your team etc CQ: Cultural Quality

• Fit with your values etc

“the fit between personalities was so much more important than just finding people who were very good”

Dick Costolo, Former CEO TwitterWasserman, Noam (2012-03-25). The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup (Kauffman Foundation Series on Innovation and Entrepreneurship) (p. 216). Princeton University Press


Example Interview Questions


IQ • What is the most relevant experience, knowledge or skill you bring to this

job?• What is your favorite example of a problem you’ve solved, and how did

you solve it? EQ

• What are you most proud of in your work interactions?• What is it that you relate to in our company?

CQ • What do you value most?• What have you most enjoyed in your previous jobs?


Startup Secret: Hire for EQ, CQ do QC


EKS: Experience, Knowledge, Skills IQ: Intelligence Quotient EQ: Emotional Quotient

• Fit with your team etc CQ: Cultural Quality

• Fit with your values etc QC: Quality Control

• Is each hire additive or dilutive to your culture?• Is each hire multiplying or dividing your culture


Everyone wants ‘A+’ Players


Hiring A+ Players


What does that really mean?

How can you apply it in practice?


Startup Secret: Hire 3As


Attitude

Aptitude

Ability

Note: Ability – is really the broader sense suitability for the job

Attitude

Aptitude

Ability


Attitude


Examples of what to look for:

Problem solving• Fail fast, learn faster

Persistence• To get to the root of the problem, issue, or opportunity

Participation• Team


Startup Secret: Hire 3As, 3+s


+ Aware (self)

+ Authentic

+ Athlete Attitude

Aptitude

Ability


3 key things lead to the “Golden Traingle”


EKS IQ

CQ

Attitude

Aptitude

Ability



Will they fit and reinforce?


The tools


EKS IQ

CQ

Attitude

Aptitude

Ability

EKS• Resume

Interviews

IQ• Proof, e.g.

Problem solving• e.g. engineers – code

CQ• Interactions, observation

Trust the process


Summary


EKS, IQ = can they be successful at the job?• Check with REAL references

CQ, EQ (Cultural Quality) = will they fit & reinforce?• Do QC (Quality Control) for additive vs. dilutive to your culture

Uncover their Passion = will they really love the job?• Separate from needs

Golden Triangle = all the above and A+ players:• Look for 3As: Attitude, Aptitude, Ability

+++ Aware, Authentic, Athlete


250+ Warner Music Groupartist websites, 3 site templates, total creative freedom


30K Concurrent visitors during Hurricane Sandy


add whole foods

340 Unique digital experiences built on a common Drupal platform – empower store managers to personalize their store site


Acquia HiringAcquia DNA Committed to Awesome Do the Right Thing Jump In and Own It Give Back More Inspire a Little Crazy


Acquia Hiring

PIII Passion Integrity Intelligence Initiative


3 Practical startup hiring tipsBECAUSE I HEAR THESE QUESTIONS ALL THE TIME


Tip 1: Hiring known quantities…

Just hire people you know & have worked well with in past?

YES• proven teaming, fit

“startups that relied relatively heavily on the founders’ personal networks received valuations that were 37% higher than those received by startups that barely tapped the founders’ networks”

-Wasserman


Tip 1: Hiring known quantities…

Just hire people you know & have worked well with in past?

YES• proven teaming, fit

NO • every situation is different

“vs. it worked like this in the past!”• diversity of background can be good

“think different”


Tip 2: Balance youth and experience

Youth or Experience? YES!

Youth what’s possible?+Experience what to consider=Success balance


Tip 3: Listen, don’t sell!

Find out what the candidate needs, wants, loves

Need

Want

?

Love


Tip 3: Listen, don’t sell!

Find out what the candidate needs, wants, loves And FIT it to a position you have

Need

Want

?

Love


Hiring Questions & Interview Tips for the Perfect FIT


3 Steps

3 steps

1. Questioning

2. Listening

3. Observing


Cultural Quality (CQ) Questions

What are you passionate about?• What is the most fun you’ve ever had?

(Intentionally open to understand work / life passions / balance) What have you most enjoyed in your previous jobs? What do you love doing day-to-day?

(What would an ideal day look like?) If you could have changed one thing at your previous/current

job, what would it be? (Also - listen for why the person didn’t change it)

What is it you think you’ll enjoy most about this job?



Aspirations What do you aspire to in life?

• How are you pursuing them? What do you want or feel you need to learn?

• (To achieve those aspirations)• (Listen for difference between want and need)

What legacy do you hope to leave?• (What do you hope to be remembered for ?)



Values What values do you believe in?

• How do you live those values? What do you value most? Personalize remaining questions for your values

• (e.g. What does Trust mean to you?)



Other What does balance mean to you in your life? What else do you love about you life?

• (Listen for consistency in outside interests with answers regarding work ethics, style etc.)


Cultural Quality (CQ) QuestionsFor Managers: What does management mean to you?

• (e.g. What is the role of management?) What environment do you like to create? How do you like to be treated?

• (Compare with answer to previous question) Who comes first, your customer or your team? Do you judge by effort or results? What do you celebrate/reward? What do you trust and what do you verify? If you were hiring me for this job, what other questions would

you ask of me?


Emotional Quotient (EQ) Questions

What do people think of you?• How accurate is their perception?

How do you feel you still need to develop personally? (Look for self respect and yet self awareness)

What work relationships are you most proud of and why? What are examples of work interactions you are most proud of

and why? What have you learned from your best and worst work

relationships? What is it that you relate to in our company?


Emotional Quotient (EQ) Questions

For Managers How would people describe your management style?

• (Compare with the CQ manager answers) How do you like to be treated?

• (Consistent with how you treat others?)


Intelligence Quotient (IQ) Questions

NOTE: there are many sources of these and they need to be specific to the job. Try to find practical instantiations and real world tests.

What is the most relevant Experience, Knowledge or Skill (EKS) you bring to the job?

How do you experiment? In your previous role(s), what did you learn, prove and act on? What are examples of problems that arose and where did they

lead you? What is your favorite example of a problem you’ve solved, and

how did you solve it?


My final questions:

What else should we know about you?

You will be amazed at what comes out!


3 Steps to discern 3 things…

3 steps

1. Questioning

2. Listening

3. Observing

Can you hear and separate what your candidate

• needs ?

• wants ?

• loves ?


My purely personal tips…

Agree your agenda• “Get to know you” first

(You are looking for CQ, EQ)• Then evaluate IQ

Break down EKS

Help the interviewee get comfortable and enable them to be authentic If necessary take them for a walk or get out of the office

Leave time to be questioned• Learn from what is asked of you


T 617.303.0064 @underscorevc

53 State Street, 10th Floor, Boston, MA 02109, USA

startup secrets - hiring a+ talent

Education